Pakistan Explores Major Shift to Local Coal, Eyes Foreign Investment in Energy Overhaul

The Pakistani government is reviewing plans to convert power plants from imported to local coal, a major policy shift aimed at reducing import dependency, Federal Minister for Power Sardar Awais Ahmed Khan Leghari revealed on Wednesday.

During a meeting with a Canadian delegation, the minister explained that environmental studies for this transition are nearing completion. He stated that if the shift is deemed feasible, the administration will proceed with its implementation, according to an official information today.

This initiative is part of a broader strategy to reform the nation”s power sector. Mr Leghari remarked that approximately two years ago, the sector faced serious challenges, prompting the government to halt unnecessary projects and adopt a more sustainable, least-cost approach to development.

He highlighted that these reforms are already showing results, noting that Pakistan sourced around 55% of its energy from clean sources last year. The minister described this as a reflection of a clear policy direction towards affordable and sustainable electricity, with plans to further expand hydropower capacity.

The government is also promoting new technologies to modernise the grid, including the encouragement of private sector investment in utility-level Battery Energy Storage Systems (BESS). Furthermore, Mr Leghari mentioned that a system for the safe and environmentally friendly disposal of solar panel waste is under development.

Canadian High Commissioner Tarik Ali Khan, who led the delegation, commended these steps. He noted that with the increasing use of electric vehicles, proper planning for battery disposal is becoming crucial.

In a move to enhance efficiency, the minister announced that a Time-of-Use tariff will be introduced soon. He elaborated that this would benefit industrial consumers by offering lower electricity costs during specific hours of higher usage.

The discussion also touched upon regional stability, with the Canadian High Commissioner appreciating Pakistan’s positive role in promoting a ceasefire amid recent U.S.-Iran tensions. He expressed gratitude for the government”s efforts and hoped for continued support in the upcoming dialogue process. In response, Minister Leghari urged the Canadian government to play an active role in fostering lasting peace in the region.

On the subject of investment, Mr Khan conveyed that a Canadian company, JCM, has shown interest in Pakistan’s energy sector. The power minister affirmed that Pakistan offers strong potential for foreign investors, particularly in its developing competitive electricity market and transmission infrastructure, welcoming such ventures.

Both officials agreed to continue discussions at a technical level to explore cooperation. The High Commissioner also shared information about a Global Energy Show scheduled to be held in Canada this summer, suggesting it would be a valuable opportunity for Pakistani professionals. Mr Leghari welcomed the invitation, stating that such platforms are vital for technology transfer and strengthening bilateral cooperation.